Legislature(1999 - 2000)

04/06/2000 01:50 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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HOUSE FINANCE COMMITTEE                                                                                                         
April 6, 2000                                                                                                                   
1:50 P.M.                                                                                                                       
                                                                                                                                
TAPE HFC 00 - 105,  Side 1.                                                                                                     
TAPE HFC 00 - 105,  Side 2.                                                                                                     
TAPE HFC 00 - 107,  Side 1.                                                                                                     
TAPE HFC 00 - 107,  Side 2.                                                                                                     
TAPE HFC 00 - 108,  Side 1.                                                                                                     
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Therriault called the House Finance Committee                                                                          
meeting to order at 1:50 P.M.                                                                                                   
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Co-Chair Therriault   Representative Foster                                                                                     
Co-Chair Mulder    Representative Grussendorf                                                                                   
Representative Austerman  Representative Moses                                                                                  
Representative Bunde   Representative Phillips                                                                                  
Representative J. Davies  Representative Williams                                                                               
Representative G. Davis                                                                                                         
                                                                                                                                
ALSO PRESENT                                                                                                                    
                                                                                                                                
Representative Fred Dyson; Representative Lisa Murkowski;                                                                       
Representative Norman Rokeberg; Peter Torkelson, Staff,                                                                         
Representative Fred Dyson; Amy Erickson, Staff,                                                                                 
Representative Lisa Murkowski; Anne Carpeneti, Assistant                                                                        
Attorney General, Criminal Division, Department of Law; John                                                                    
Bitney, Legislative Liaison, Alaska Housing Finance                                                                             
Corporation (AHFC), Anchorage; Dave Stewart, Personnel                                                                          
Manager, Department of Administration; Wendy Lindskoog,                                                                         
Director of External Affairs, Alaska Railroad Corporation                                                                       
(ARRC), Anchorage; Mark Hamilton, President, Statewide                                                                          
Programs and Services, University of Alaska, Fairbanks;                                                                         
Catherine Reardon, Director, Division of Occupational                                                                           
Licensing, Department of Community & Economic Development;                                                                      
Bob Condon, President, Alaska Federation of Teachers for                                                                        
Community Colleges; Dave Lewis, Operations Manager, Alaska                                                                      
Fiberstar, Eagle.                                                                                                               
                                                                                                                                
TESTIFIED VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Phyllis Johnson, Alaska Railroad Corporation, Anchorage;                                                                        
Sherry Buretta, Chairman of the Board, Chugach Alaska                                                                           
Corporation, Chugach; Ron Johnson, Real Estate Commission,                                                                      
Kenai; Deave Feeken, Alaskan Association of Realtors, Kenai;                                                                    
Bruno Rehbein, Mat-Su; Bill Bruu, Mat-Su; David Owens, Owens                                                                    
Inspection Services, Mat-Su; Blair McCune, Deputy Director,                                                                     
Alaska Public Defenders Agency, Department of                                                                                   
Administration, Anchorage.                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
HB 207 An Act relating to the registration of persons who                                                                       
perform home inspections; and providing for an                                                                                  
effective date.                                                                                                                 
                                                                                                                                
 HB 207 was HEARD and HELD in Committee for further                                                                             
consideration.                                                                                                                  
HB 317 An Act relating to recruitment, selection,                                                                               
appointment, and promotion of state employees and                                                                               
the duties of the Department of Administration                                                                                  
concerning those and other related functions; and                                                                               
providing for an effective date.                                                                                                
                                                                                                                                
HB 317 was POSTPONDED for consideration to a                                                                                    
latter date.                                                                                                                    
HB 320 An Act approving the application for and                                                                                 
acceptance of a grant of certain federal land by                                                                                
the Alaska Railroad Corporation; approving the                                                                                  
conveyance of the entire interest in the Whittier                                                                               
DeLong Dock and associated uplands, tidelands, and                                                                              
submerged lands by the Alaska Railroad                                                                                          
Corporation; relating to use and disposition of                                                                                 
the Whittier DeLong Dock and associated land; and                                                                               
providing for an effective date.                                                                                                
                                                                                                                                
 CS HB 320 (FIN) was reported out of Committee with                                                                             
a "do pass" consideration and with a zero fiscal                                                                                
note by the House Transportation Committee dated                                                                                
3/29/00.                                                                                                                        
                                                                                                                                
HB 362 An Act authorizing the exchange of land between                                                                          
the Alaska Railroad Corporation and Eklutna, Inc.,                                                                              
between the Alaska Railroad Corporation and the                                                                                 
United States Department of the Army and the                                                                                    
United States Department of the Air Force, between                                                                              
the Alaska Railroad Corporation and Chugach Alaska                                                                              
Corporation, and between the Alaska Railroad                                                                                    
Corporation and the Municipality of Anchorage; and                                                                              
providing for an effective date.                                                                                                
                                                                                                                                
 CS HB 362 (FIN) was reported out of Committee with                                                                             
a "do pass" recommendation and with a zero fiscal                                                                               
noted by the Department of Community & Economic                                                                                 
Development dated 3/3/00.                                                                                                       
                                                                                                                                
HB 368 An Act relating to release of persons before trial                                                                       
and before sentencing or service of sentence;                                                                                   
relating to custodians of persons released, to                                                                                  
security posted on behalf of persons released, and                                                                              
to the offense of violation of conditions of                                                                                    
release; amending Rule 41(f), Alaska Rules of                                                                                   
Criminal Procedure; and providing for an effective                                                                              
date.                                                                                                                           
                                                                                                                                
 CS HB 368 (JUD) was reported out of Committee with                                                                             
a "no recommendation" and with fiscal notes by the                                                                              
Department of Corrections dated 2/11/00, the                                                                                    
Department of Administration dated 2/11/00 and a                                                                                
zero note by the Department of Law dated 2/11/00.                                                                               
                                                                                                                                
HB 372 An Act relating to criminal sentencing and                                                                               
restitution.                                                                                                                    
                                                                                                                                
CS HB 372 (FIN) was reported out of Committee with                                                                              
a "do pass" recommendation and with a fiscal note                                                                               
by Department of Corrections dated 3/30/00.                                                                                     
                                                                                                                                
HB 426 An Act relating to transfers of public land or                                                                           
grants or conveyances of interest in public land                                                                                
among the Alaska Railroad Corporation, the                                                                                      
Department of Transportation and Public                                                                                         
Facilities, and the Department of Natural                                                                                       
Resources to relocate or widen the Seward Highway,                                                                              
to relocate railroad facilities, and to relocate                                                                                
adjacent utility facilities; and providing for an                                                                               
effective date.                                                                                                                 
                                                                                                                                
 HB 426 was POSTPONED for hearing at a latter date.                                                                             
                                                                                                                                
HB 441 An Act making appropriations for the operating                                                                           
expenses of the University of Alaska; making                                                                                    
appropriations under art. IX, sec. 17c,                                                                                         
Constitution of the State of Alaska, from the                                                                                   
constitutional budget reserve fund; and providing                                                                               
for an effective date.                                                                                                          
                                                                                                                                
HB 441 was HEARD and HELD in Committee for                                                                                      
consideration at a latter date.                                                                                                 
HOUSE BILL NO. 372                                                                                                              
                                                                                                                                
An Act relating to criminal sentencing and restitution.                                                                         
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #1.  [Copy on                                                                      
File].  The amendment would provide oversight to the Court                                                                      
System and would exempt out arson if a person had been put                                                                      
at risk.  There being NO OBJECTION, it was adopted.                                                                             
                                                                                                                                
Co-Chair Therriault suggested that with current language,                                                                       
the Court would be able to define what "community" is.                                                                          
Representative J. Davies noted that he wanted to preclude                                                                       
any argument over that concern by including a definition.                                                                       
He reiterated that it is important that it is clarified.                                                                        
Representative J. Davies MOVED a change to Page 1, Line 13,                                                                     
adding, "In this section, community should be defined by the                                                                    
Court."                                                                                                                         
                                                                                                                                
REPRESENTATIVE FRED DYSON agreed that the Court would be                                                                        
able to define who is a "community" which would allow both                                                                      
sides, the perpetrator and the victim, the opportunity for                                                                      
input regarding the definition of community.  That action                                                                       
would place the Court in the approving role.                                                                                    
                                                                                                                                
Co-Chair Therriault asked if there would be an expense                                                                          
incurred with the inclusion of "approved".  Representative                                                                      
J. Davies acknowledged that both sides would have to agree                                                                      
to the process in order to move forward.                                                                                        
                                                                                                                                
Discussion followed among Committee members regarding the                                                                       
definition of what "community". there being NO further                                                                          
OBJECTION, Amendment #2 was adopted.                                                                                            
                                                                                                                                
Representative Foster MOVED to report CS HB 372 (FIN) out of                                                                    
Committee with individual recommendations and the                                                                               
accompanying fiscal note.  There being NO OBJECTION, it was                                                                     
so ordered.                                                                                                                     
                                                                                                                                
CS HB 372 (FIN) was reported out of Committee with a "do                                                                        
pass" recommendation and with a fiscal note by Department of                                                                    
Corrections dated 3/30/00.                                                                                                      
HOUSE BILL NO. 362                                                                                                              
                                                                                                                                
An Act authorizing the exchange of land between the                                                                             
Alaska Railroad Corporation and Eklutna, Inc., between                                                                          
the Alaska Railroad Corporation and the United States                                                                           
Department of the Army and the United States Department                                                                         
of the Air Force, between the Alaska Railroad                                                                                   
Corporation and Chugach Alaska Corporation, and between                                                                         
the Alaska Railroad Corporation and the Municipality of                                                                         
Anchorage; and providing for an effective date.                                                                                 
                                                                                                                                
Co-Chair Therriault stated that the committee substitute, 1-                                                                    
LS1455\H, Utermohle, 4/3/00, would combine HB 320, HB 362                                                                       
and HB 426.  [Copy on File].  He pointed out that                                                                               
Representative Bunde had submitted an amendment to HB 320                                                                       
bill which would address the Whittier DeLong Dock and the                                                                       
Alaska Railroad Corporation.  [Copy on File].                                                                                   
                                                                                                                                
Vice Chair Bunde MOVED to ADOPT the version (H) committee                                                                       
substitute as the document before the Committee.                                                                                
Representative Phillips OBJECTED.                                                                                               
                                                                                                                                
Representative J. Davies MOVED to ADOPT the (H) version                                                                         
without the Whittier DeLong Dock.  Representative Phillips                                                                      
OBJECTED.  She stated that she did not oppose combining the                                                                     
three bills, however, noted that there is opposition from                                                                       
the Railroad on putting the DeLong Dock concept into the                                                                        
legislation.  She stated that she had spoken with Senator                                                                       
Leman and that he had expressed his concern no to include                                                                       
the DeLong Dock.                                                                                                                
                                                                                                                                
REPRESENTATIVE LISA MURKOWSKI stated that the intent is to                                                                      
guarantee that the straightening of the tracks between                                                                          
Anchorage and Wasilla is accomplished with legislation this                                                                     
year.  She emphasized that it is very important that this is                                                                    
not held up and that nothing jeopardizes the success of the                                                                     
legislation.                                                                                                                    
                                                                                                                                
WENDY LINDSKOOG, DIRECTOR OF EXTERNAL AFFAIRS, ALASKA                                                                           
RAILROAD CORPORATION, ANCHORAGE, echoed sentiments expressed                                                                    
by Representative Murkowski.  She noted that if the bills                                                                       
were combined in the proposed fashion, there could be a                                                                         
possibility that all three could die and that the track                                                                         
alignment bill would not go forward.  She stated for the                                                                        
record that the Alaska Railroad does support the DeLong Dock                                                                    
bill passing this session.                                                                                                      
                                                                                                                                
Representative Phillips requested that Ms. Lindskoog restate                                                                    
the Railroad's intention in regard to the DeLong Dock.  Ms.                                                                     
Lindskoog clarified that the Alaska Railroad is "completely"                                                                    
in support of the DeLong Dock bill.  Passage of that bill                                                                       
would help economic development in Whittier.                                                                                    
                                                                                                                                
A roll call vote was taken on the motion to delete the                                                                          
DeLong Dock portion.                                                                                                            
                                                                                                                                
IN FAVOR: Grussendorf, Moses, Phillips, Williams,                                                                               
Austerman, J. Davies, G. Davis                                                                                                  
OPPOSED:  Foster, Bunde, Therriault, Mulder                                                                                     
                                                                                                                                
The MOTION PASSED (7-4).                                                                                                        
                                                                                                                                
There being NO OBJECTION, the (H) version was adopted as                                                                        
amended.                                                                                                                        
                                                                                                                                
Co-Chair Therriault noted that Representative Bunde would                                                                       
not be offering his amendment to the committee substitute.                                                                      
                                                                                                                                
Co-Chair Mulder MOVED to report CS HB 362 (FIN) out of                                                                          
Committee with individual recommendations and with the                                                                          
accompanying fiscal note.                                                                                                       
                                                                                                                                
CS HB 362 (FIN) was reported out of Committee with a "do                                                                        
pass" recommendation and with a fiscal note by Department of                                                                    
Community & Economic Development dated 3/3/00.                                                                                  
HOUSE BILL NO. 320                                                                                                              
                                                                                                                                
An Act approving the application for and acceptance of                                                                          
a grant of certain federal land by the Alaska Railroad                                                                          
Corporation; approving the conveyance of the entire                                                                             
interest in the Whittier DeLong Dock and associated                                                                             
uplands, tidelands, and submerged lands by the Alaska                                                                           
Railroad Corporation; relating to use and disposition                                                                           
of the Whittier DeLong Dock and associated land; and                                                                            
providing for an effective date.                                                                                                
                                                                                                                                
                                                                                                                                
Vice Chair Bunde MOVED to ADOPT Amendment #1, which would                                                                       
insert language indicating that neither the corporation nor                                                                     
the City of Whittier may grant any special rights to a third                                                                    
party to provide management services at the dock.  [Copy on                                                                     
File].  Representative J. Davies OJBECTED.  He asked how                                                                        
that would affect Page 2, Line 18.  He understood that                                                                          
language would instruct it to go into effect.  He questioned                                                                    
how the amendment would relate.                                                                                                 
                                                                                                                                
WENDY LINDSKOOG, ALASKA RAILROAD CORPORATION, ANCHORAGE,                                                                        
replied that the amendment would supercede the management                                                                       
term agreement.  Representative J. Davies questioned if                                                                         
there should be a reference to that document.  Ms. Lindskoog                                                                    
explained that it would supercede the part that mentions the                                                                    
Chugach Alaska Corporation.  All other aspects of that                                                                          
document would be pertaining to how the City of Whittier and                                                                    
the Alaska Railroad Corporation (ARRC) would set up a                                                                           
management or operating agreement.                                                                                              
                                                                                                                                
Vice Chair Bunde stated that the amendment would only affect                                                                    
a portion of the management agreement that addresses the                                                                        
first right of refusal.  He recommended that the remainder                                                                      
of the agreement not be changed.                                                                                                
                                                                                                                                
Representative Williams pointed out that Chugach is in favor                                                                    
of the way the language currently is written in the bill.                                                                       
He asked if that was part of the negotiated settlement or                                                                       
the right of refusal.  Ms. Lindskoog responded that all                                                                         
parties had been attempted to be included in the bill.  She                                                                     
noted that reference to the terms in the bill is how                                                                            
management relates.  She pointed out that it would directly                                                                     
conflict with AARC procurement codes. To make the bill                                                                          
legal, that reference should be deleted.                                                                                        
                                                                                                                                
Representative Williams asked if that had been negotiated.                                                                      
Co-Chair Therriault explained that it was part of an                                                                            
negotiation that went on with Chugach and ARRC.  He added                                                                       
that they did not have the power to negotiate on behalf of                                                                      
the Legislature to make a sole source contract.                                                                                 
                                                                                                                                
Representative Williams suggested that their code allowed                                                                       
them the right to do that.  Co-Chair Therriault noted that                                                                      
since the Railroad operates under their own procurement                                                                         
code, there is some question if they can go to a sole source                                                                    
contract without violating the rule procedures.                                                                                 
                                                                                                                                
Representative Phillips pointed out that previous testimony                                                                     
indicates that it would be in violation of their procurement                                                                    
codes.  Representative Williams voiced concern that if it                                                                       
had already been negotiated with Chugach, how would the                                                                         
change work affect them.  Ms. Lindskoog reiterated that the                                                                     
bill would be following the procurement codes.  She stated                                                                      
that ARRC would have to negotiate separately with Chugach.                                                                      
Representative Williams understood that the Railroad had                                                                        
already negotiated with Chugach the intent of the proposal.                                                                     
                                                                                                                                
Representative G. Davis asked about the management terms of                                                                     
the DeLong Dock.  He inquired if Chugach had signed on to                                                                       
it.  Ms. Lindskoog stated that they had not and that there                                                                      
had been negotiations but no signatures.  At this time, the                                                                     
signatures included on that document are the City of                                                                            
Whittier and the ARRC.                                                                                                          
                                                                                                                                
Representative J. Davies advised that in that document, it                                                                      
does grant Chugach Corporation first refusal on the                                                                             
management plan.  Ms. Lindskoog acknowledged that was                                                                           
correct.  However, she added that option goes directly                                                                          
against the procurement rules.                                                                                                  
                                                                                                                                
Vice Chair Bunde pointed out that there was a legal opinion                                                                     
from Terry Bannister, Legal Services, indicating that the                                                                       
first right of refusal in not consistent with the                                                                               
procurement code.                                                                                                               
                                                                                                                                
Representative J. Davies proposed another amendment to the                                                                      
one proposed by Representative Bunde.  He believed that the                                                                     
inconsistency could be fixed.                                                                                                   
                                                                                                                                
Vice Chair Bunde MOVED to WITHDREW Amendment #1.                                                                                
Representative J. Davies MOVED to ADOPT an amendment to Page                                                                    
2, Line 18, deleting "consistent" and inserting "to the                                                                         
extent possible".  There being NO OBJECTION, it was adopted.                                                                    
                                                                                                                                
Vice Chair Bunde MOVED to ADOPT Amendment #2.  [Previously                                                                      
adopted.                                                                                                                        
                                                                                                                                
Co-Chair Therriault questioned language on Page 2, Line 15,                                                                     
"not with standing".  Representative J. Davies explained                                                                        
that portion explains the terms of what occurs if it does                                                                       
not go into effect.                                                                                                             
                                                                                                                                
SHERRY BURETTA, (TESTIFIED VIA TELECONFERENCE), CHAIRMAN OF                                                                     
THE BOARD, CHUGACH ALASKA CORPORATION, CHUGACH, commented                                                                       
that the negotiations that had taken place between Chugach                                                                      
and the ARRC.  The negotiations were consistent with their                                                                      
right to utilize that dock.  The negotiation and agreement                                                                      
which was arrived at, allowed Chugach to have their interest                                                                    
addressed.  She stated that this was a "slap in the face" as                                                                    
far as Chugach's willingness to withdraw their attempt at                                                                       
securing the property due to the federal acquisition                                                                            
process.                                                                                                                        
                                                                                                                                
Ms. Buretta added that the language is inconsistent with                                                                        
other issues that have passed through the Legislature.  She                                                                     
reiterated that she was opposed to the language as it                                                                           
stands.  Co-Chair Therriault agreed that the Legislature                                                                        
does have that power, however, the Legislature will not                                                                         
exercise that power on this piece of legislation.                                                                               
                                                                                                                                
Representative J. Davies stated that the language of the                                                                        
bill indicates that the Legislature expects the Railroad and                                                                    
the City of Whittier to execute that management agreement to                                                                    
the fullest extent possible.  He understood that both of                                                                        
these entities would try to honor whatever previous                                                                             
understandings they had with Chugach.                                                                                           
                                                                                                                                
Co-Chair Mulder MOVED to report CS HB 320 (FIN) out of                                                                          
Committee with individual recommendations and with the                                                                          
accompanying fiscal note.  There being NO OBJECTION, it was                                                                     
so ordered.                                                                                                                     
                                                                                                                                
CS HB 320 (FIN) was reported out of Committee with a "do                                                                        
pass" recommendation and with a zero fiscal note by the                                                                         
House Transportation Committee dated 3/29/00.                                                                                   
HOUSE BILL NO. 368                                                                                                              
                                                                                                                                
An Act relating to release of persons before trial and                                                                          
before sentencing or service of sentence; relating to                                                                           
custodians of persons released, to security posted on                                                                           
behalf of persons released, and to the offense of                                                                               
violation of conditions of release; amending Rule                                                                               
41(f), Alaska Rules of Criminal Procedure; and                                                                                  
providing for an effective date.                                                                                                
                                                                                                                                
ANNE CARPENETI. ASSISTANT ATTORNEY GENERAL, CRINIMAL                                                                            
DIVISION, DEPARTMENT OF LAW, stated that the proposed                                                                           
legislation would address four areas:                                                                                           
                                                                                                                                
  Establishes the crime of violating conditions of                                                                              
release;                                                                                                                        
  Authorizes courts to order performance bonds;                                                                                 
  Charges contempt of court for third-party custodian's                                                                         
failure to report condition violations; and                                                                                     
  Authorizes delayed reporting date for jail time.                                                                              
                                                                                                                                
Ms. Carpeneti continued:                                                                                                        
                                                                                                                                
Violation and Conditions of Release. In criminal cases, an                                                                      
accused has a constitutional right to be released on bail                                                                       
before trial. Persons who have been found guilty may be                                                                         
released before sentence is imposed or before ordered to                                                                        
serve a sentence. When releasing a person, the court may                                                                        
impose both general conditions, such as requiring that the                                                                      
accused violate no laws, and conditions specific to the                                                                         
particular case or defendant, such as forbidding an accused                                                                     
in a domestic violence case from contacting the victim. The                                                                     
safety of the victim often depends on the enforcement of                                                                        
release conditions. Currently, although it is a crime to                                                                        
willfully fail to appear as ordered by the court, there are                                                                     
few options for violation of other release conditions except                                                                    
for incarcerating the person.  The legislation provides that                                                                    
it is a Class A misdemeanor for a person to violate release                                                                     
conditions if the person is charged with a felony and a                                                                         
Class B misdemeanor to violate conditions for a person                                                                          
charged with a misdemeanor.                                                                                                     
                                                                                                                                
Performance Bonds. The bill clarifies the law by                                                                                
specifically authorizing the court to order the accused to                                                                      
post a performance bond, and requires that the court forfeit                                                                    
the security if the person violates a condition of no                                                                           
contact with the victim or witness in a proceeding. The                                                                         
court may forfeit the security if the accused violates other                                                                    
conditions. The standard for forfeiture of security in Rule                                                                     
41(f), Alaska Rules of Criminal Procedure, is amended to                                                                        
require that security be forfeited unless the defendant                                                                         
could not comply due to circumstances beyond the control of                                                                     
the defendant. An example of such circumstances includes                                                                        
weather conditions that prevent airplane transportation, if                                                                     
there is no alternative way to travel to court.                                                                                 
                                                                                                                                
Third Party Custodians. Courts often release a defendant to                                                                     
the custody of a third party either an individual or an                                                                         
organization. Custodians are required to report to the court                                                                    
or the police if the defendant violates release conditions,                                                                     
but often do not. The bill provides that a third-party                                                                          
custodian can be found in contempt for failing to report                                                                        
immediately a defendant's violations of conditions of                                                                           
release ordered by the court, and requires the court to                                                                         
inform the custodian of the possible consequences of                                                                            
ignoring the duty to report.                                                                                                    
                                                                                                                                
Delayed Reporting Date. The bill specifically gives the                                                                         
court the authority to order a person sentenced to a period                                                                     
of incarceration to begin serving the sentence at a date                                                                        
sometime after it was imposed. With overcrowded correctional                                                                    
facilities, this is useful to help avoid "bottlenecks" in                                                                       
admissions b proper scheduling.                                                                                                 
                                                                                                                                
Representative Austerman asked the amount of discussion the                                                                     
bill had had on the third party provision.  Ms. Carpeneti                                                                       
advised that if the person did not know that a violation had                                                                    
occurred, they would not be responsible to report it.  Most                                                                     
custodians take their responsibly seriously.  If the court                                                                      
takes the risk to release someone and they are not to                                                                           
contact the victim, that would require the custodian to                                                                         
notify the police if the defendant does contact the victim.                                                                     
It is important that they take that responsibility                                                                              
seriously.                                                                                                                      
                                                                                                                                
Representative Austerman asked if forfeiture of security                                                                        
would be a separate bond for being released.  Ms. Carpeneti                                                                     
explained that there would be two types of security if the                                                                      
bill were passed: there would be the performance bond and                                                                       
the appearance bonds.  The appearance bonds are similar to                                                                      
the traditional bail bonds.                                                                                                     
                                                                                                                                
Representative J. Davies pointed out that bail bond people                                                                      
are concerned with how much they would need to charge to                                                                        
provide the "insurance" and the collateral requirements.  He                                                                    
noted that Ms. Carpeneti had indicated that these would be                                                                      
discretionary.  He asked how the legislation would impact a                                                                     
person's ability to get a bond.                                                                                                 
                                                                                                                                
Ms. Carpeneti responded that it would be discretionary to                                                                       
lose the bond.  She added that the bail bondsman could write                                                                    
appearance bonds or performance bonds.  A bondsman could                                                                        
post a bond for a person who failed to appear. Ms. Carpeneti                                                                    
stated that judges could tailor the amount of the                                                                               
performance bond to an amount that a person could personally                                                                    
come up with.  That would give the individual incentive to                                                                      
abide to the conditions of release.                                                                                             
                                                                                                                                
Representative J. Davies asked if there was a                                                                                   
distinguishment between the mandatory and discretionary                                                                         
amounts.  Representative J. Davies noted that he was more                                                                       
interested in the "no contact" portion of the legislation.                                                                      
Ms. Carpeneti explained that the bill provides that if a                                                                        
convicted person does contact the victim in violation of a                                                                      
performance bond, then the security would be forfeited.                                                                         
                                                                                                                                
(TAPE CHANGE, HFC 00 - 105, Side 2)                                                                                             
                                                                                                                                
Co-Chair Mulder noted that currently, when person signs on                                                                      
as a third party custodian, they assume some                                                                                    
responsibilities.  Under the proposed legislation, the only                                                                     
penalties placed upon a third party would be in the event                                                                       
that the party disappears. They are then required to report                                                                     
it.  Ms. Carpeneti noted that the bill stipulates that they                                                                     
must report it immediately.                                                                                                     
                                                                                                                                
Co-Chair Mulder asked if the only change from current                                                                           
practice was that there would be enforcement.  Ms. Carpeneti                                                                    
agreed and added that they could be found in contempt of                                                                        
court.  Co-Chair Mulder wanted to guarantee that this would                                                                     
not be a "discouragement" to parties contemplating becoming                                                                     
the third party custodians.                                                                                                     
                                                                                                                                
BLAIR MCCUNE, (TESTIFIED VIA TELECONFERENCE), DEPUTY                                                                            
DIRECTOR, ALASKA PUBIC DEFENDERS AGENCY, DEPARTMENT OF                                                                          
ADMINISTRATION, ANCHORAGE, commented that the Public                                                                            
Defender's agency is concerned with the legislation.  He                                                                        
stated that prisoner overcrowding is a big problem in                                                                           
Alaska.  If the number of prisoners increases, there will be                                                                    
serious consequences for overcrowding.                                                                                          
                                                                                                                                
Mr. McCune noted that the main concern is with performance                                                                      
bonds and the added offense of violation of prison release.                                                                     
He disagreed with Ms. Carpeneti's statement that there would                                                                    
not be any additional consequences for someone who had                                                                          
violated their conditions of release.  Mr. McCune emphasized                                                                    
that there would be consequences and that those persons                                                                         
would not be considered for probation.  He added that going                                                                     
back to jail would be a major consequence.                                                                                      
                                                                                                                                
Mr. McCune advised that there are bondsmen that write                                                                           
appearance bonds in many other areas of the State outside of                                                                    
Juneau, especially in Anchorage.  The bondsmen write these                                                                      
because they are fairly predictable.  Bondsmen have "ways of                                                                    
persuading" these folks to come to court quickly.  He did                                                                       
not see the private bondsmen writing any of the performance                                                                     
bonds which would be a business risk.  Mr. McCune                                                                               
acknowledged that the Public Defenders Agency is concerned                                                                      
that performance bonds would be prevalent and would add                                                                         
additional work and barriers to having people released.  He                                                                     
reminded members that people in jail and facing bail are not                                                                    
in a good arguing position.                                                                                                     
                                                                                                                                
Mr. McCune pointed out that there are so many conditions of                                                                     
release.   He added that the bonding issue would place                                                                          
hardships on families that can not afford it.  Another                                                                          
consequence is the violation and conditions of release.                                                                         
These consequences are real and the agency is concerned that                                                                    
these would become a plea bargaining tool, making it a Class                                                                    
A misdemeanor.                                                                                                                  
                                                                                                                                
Mr. McCune stressed that the current system is a fair                                                                           
system.  People are being released from the jails, whereas,                                                                     
within the proposed law, unwarranted difficulties will                                                                          
continue to surface.                                                                                                            
                                                                                                                                
Representative Phillips asked if the Public Defenders Agency                                                                    
supports penalties when there has been a violation of their                                                                     
conditions of release.  Mr. McCune interjected that they do                                                                     
not support Section #3, the new law which makes it a                                                                            
misdemeanor to violate conditions.  Mr. McCune added that                                                                       
these people generally do not go unpenalized.  If it is a                                                                       
minor violation, they might not be penalized.  If it were a                                                                     
serious violation, they would be put back in jail.  If they                                                                     
were found guilty, they would have to go before the same                                                                        
judge that sentenced them and he would again determine the                                                                      
probation conditions.  Mr. McCune emphasized that these are                                                                     
consequences when you are in jail.                                                                                              
                                                                                                                                
Ms. Carpeneti clarified that there would be no additional                                                                       
consequences outside of what there is on the original                                                                           
charge.  She countered statements made by Mr. McCune.  She                                                                      
noted that the bill provides that if a person is charged                                                                        
with a felony and conditions of release are violated, and                                                                       
then convicted, that would then be considered a Class A                                                                         
misdemeanor.  However, if the person is charged with the                                                                        
underlying charge, and they violate the conditions of                                                                           
release and are convicted of that violation, it would then                                                                      
become a Class B misdemeanor.                                                                                                   
                                                                                                                                
Representative J. Davies asked if there would be an                                                                             
additional consequence if the bond procedure were                                                                               
established.  Ms. Carpeneti explained that the legislation                                                                      
would encourage people to provide for the conditions of                                                                         
release in two ways, which are the possibility of being                                                                         
charged for another crime and monetary consequences if                                                                          
conditions are violated.                                                                                                        
                                                                                                                                
Representative J. Davies asked why the Department would need                                                                    
both civil penalties.  Ms. Carpeneti replied that it is                                                                         
important for public safety that people released, abide by                                                                      
the conditions of their release.                                                                                                
                                                                                                                                
Representative G. Davis asked if there were statistics                                                                          
regarding the economic status of a person and how bonding                                                                       
would be determined for that person.  He asked about the                                                                        
conditions for the very poorest of people.  Ms. Carpeneti                                                                       
responded that judges are capable of looking at a person's                                                                      
resources and then making the bond appropriate.                                                                                 
                                                                                                                                
Vice Chair Bunde MOVE to report CS HB 368 (JUD) out of                                                                          
Committee with individual recommendations and with the                                                                          
accompanying fiscal note.  There being NO OBJECTION, it was                                                                     
so ordered.                                                                                                                     
                                                                                                                                
CS HB 368 (JUD) was reported out of Committee with a "no                                                                        
recommendation" and with a fiscal note by Department of                                                                         
Corrections dated 2/11/00, the Department of Administration                                                                     
dated 2/11/00 and a zero note by the Department of Law dated                                                                    
2/11/00.                                                                                                                        
HOUSE BILL NO. 441                                                                                                              
                                                                                                                                
An Act making appropriations for the operating expenses                                                                         
of the University of Alaska; making appropriations                                                                              
under art. IX, sec. 17c, Constitution of the State of                                                                           
Alaska, from the constitutional budget reserve fund;                                                                            
and providing for an effective date.                                                                                            
                                                                                                                                
MARK HAMILTON, PRESIDENT, STATEWIDE PROGRAMS AND SERVICES,                                                                      
UNIVERSITY OF ALASKA, FAIRBANKS, stated that House Bill 441                                                                     
invests a one-time, state funded $34,000,000 appropriation                                                                      
to the University of Alaska with a two-year lapse date.  In                                                                     
total, it would invest $532,654,800 in operations to the                                                                        
University of Alaska.                                                                                                           
                                                                                                                                
The bill responds to the University's Board of Regents                                                                          
request to help the University by making a significant and                                                                      
multi-year commitment to a new direction.                                                                                       
                                                                                                                                
President Hamilton pointed out that House Bill 441, in an                                                                       
innovative fashion, would address the needs of the                                                                              
University of Alaska. The bill invests a total of                                                                               
$532,654,800 for operation of the University of Alaska. That                                                                    
would include $66,284,700 ($34,000,000 in state funds) with                                                                     
a two-year lapse date so the University could retool to meet                                                                    
Alaska's changing needs.                                                                                                        
                                                                                                                                
President Hamilton noted that HB 441 would provide                                                                              
$466,370,100 (including $172,143,300 in state funds) as                                                                         
basic funding for FY 01.                                                                                                        
                                                                                                                                
      Funds             6/30/01 Lapse        6/30/O2 Lapse                                                                      
 State Funds 172,143,300 34,000,000                                                                                             
 Other funds 294,226,800 32,284,700                                                                                             
 Total funds 466,370,100 66,284,700                                                                                             
                                                                                                                                
The separate, two-year allocation to the University budget                                                                      
would allow the Board of Regents stability in funding for                                                                       
new programs and additional flexibility in meeting the                                                                          
evolving needs of the students and the State.  The                                                                              
University would be able to begin programs with the                                                                             
assurance that second year funding would be available. The                                                                      
two year time span would allow new and modified programs to                                                                     
begin functioning so that they can be reasonably measured as                                                                    
the FY 03 budget is being considered.                                                                                           
                                                                                                                                
President Hamilton stated that HB 441 would establish goals                                                                     
for the University to meet, including providing more Alaska                                                                     
trained teachers, helping diversify our economy, providing                                                                      
education and training for jobs and professions that are                                                                        
developing in Alaska.  The Legislature expects the                                                                              
University to offer quality education to its students and                                                                       
retain students through graduation. It also expects the                                                                         
University forge partnerships with the private sector.  To                                                                      
accomplish these goals, the University will need to review                                                                      
all its programs and facilities and eliminate or revamp                                                                         
those not contributing to these new goals.                                                                                      
                                                                                                                                
President Hamilton urged a change to the existing document.                                                                     
He stated that it was his intent, to pay from that same sum,                                                                    
the salary increase agreed to through the contracts.  He                                                                        
noted that the faculty deserves those raises and that it                                                                        
would not require extra dollars.  He reiterated that the                                                                        
legislation is innovative and enlightened.                                                                                      
                                                                                                                                
Co-Chair Mulder asked for more information regarding the new                                                                    
programs which would be coming on line.  President Hamilton                                                                     
explained that there would be programs in some direct                                                                           
service areas, addressing long-term existing requirements                                                                       
for the production of quality teachers in the State.                                                                            
Additionally, there would be a two-year nursing graduate                                                                        
program, several allied health fields, heavy equipment                                                                          
operator program, additional opportunities in logistics as                                                                      
well as informatics, and a degree in financing.                                                                                 
                                                                                                                                
Co-Chair Mulder asked for further discussion on the                                                                             
continuation of the four-year program and how that would                                                                        
"fit" with the five-year program system.  President Hamilton                                                                    
noted that a State University is directed to do a four-year                                                                     
program.  He stated that the University was faced with a                                                                        
dilemma three years ago which was either to do "quality" or                                                                     
"quantity".  The quality piece tried to get in consort with                                                                     
the Alaska quality schools initiative.  At that time, it was                                                                    
assumed that the University would produce another year of                                                                       
graduate level participation.  He hoped that there was a                                                                        
potential to merge those two programs and save a couple                                                                         
faculty positions.                                                                                                              
                                                                                                                                
President Hamilton stated that the University would now                                                                         
offer a four-year program and wanted to keep the five-year                                                                      
program.                                                                                                                        
                                                                                                                                
Representative Williams questioned investment of teacher                                                                        
qualifications and expertise of the faculty and training of                                                                     
the students.  President Hamilton responded that the system                                                                     
is improving and the programs are being revamped.                                                                               
Representative Williams advised that "something is currently                                                                    
broken" in the University system as it now exists.                                                                              
                                                                                                                                
President Hamilton assured members that many changes need to                                                                    
happen which the University is now attempting.  Funding this                                                                    
legislation will enable these things to be addressed.                                                                           
                                                                                                                                
President Hamilton stated that there has been a significant                                                                     
loss of confidence from loosing the accreditation by the                                                                        
University of Alaska-Fairbanks.  He believed that there was                                                                     
great failure on the part of the University not to have                                                                         
dealt with that publicly.  The report that removed the                                                                          
accreditation, at the same time, praised the quality of the                                                                     
faculty and the quality of the students.  He emphasized that                                                                    
a university needs to produce the majority of the teachers                                                                      
in that state.  That is fundamental to the long-term support                                                                    
of the community in terms of recruitment.                                                                                       
                                                                                                                                
President Hamilton pointed out that only 15% of the faculty                                                                     
of the Alaska school system come from residents within the                                                                      
State.  Most other states have 40% of their teachers having                                                                     
been trained in their state.  He reiterated that this is not                                                                    
a broken system, however, it does have a bad reputation.                                                                        
                                                                                                                                
Co-Chair Mulder asked about the logistics program and the                                                                       
vision for that program in the future.  President Hamilton                                                                      
advised that logistics at large has an enormous potential in                                                                    
the State of Alaska.  He noted that Anchorage is #2 in the                                                                      
global exchange with the airport and that Fairbanks is #9.                                                                      
It appears that the free market believes that this is a good                                                                    
place (Alaska) to undertake this "stuff".  He added that                                                                        
many industries within the State have indicated their                                                                           
commitment by donating approximately $1 million dollars to                                                                      
the University to expand that program.                                                                                          
                                                                                                                                
President Hamilton noted that through discussions with the                                                                      
military installations, there is a great deal of interest in                                                                    
the possibility of out-sourcing the logistics schools.                                                                          
President Hamilton stressed that the State would be hard                                                                        
pressed to understand the impact this.                                                                                          
                                                                                                                                
Representative Williams questioned what the extra funding                                                                       
would be used for.  President Hamilton offered to outline                                                                       
prioritized programs.                                                                                                           
                                                                                                                                
(TAPE CHANGE, HFC 00 - 105, Side 1).  **Tape out of place**                                                                     
                                                                                                                                
Co-Chair Mulder spoke to the contracts and recognized                                                                           
President Hamilton's desire to treat all his employees                                                                          
equally.  Co-Chair Mulder commented that the Legislature is                                                                     
trying to treat all the contracts consistently.  President                                                                      
Hamilton stated that was fair.  He added that it is his                                                                         
intent to construct a "contract continuation" which would                                                                       
not change the financial terms of the previous contract.                                                                        
This was constructed in time so that it could be considered                                                                     
along with everything else.  He indicated that this is not a                                                                    
small point and urged that be reconsidered.                                                                                     
                                                                                                                                
Representative G. Davis asked if the amount of the new                                                                          
contract was known.                                                                                                             
                                                                                                                                
(TAPE CHANGE, HFC 00 - 107, Side 1).                                                                                            
                                                                                                                                
DAVE LEWIS, OPERATIONS MANAGER, ALASKA FIBERSTAR, EAGLE                                                                         
RIVER, ALASKA, spoke on behalf and in support of greater                                                                        
funding for the University of Alaska.  He stressed that the                                                                     
State needs the University for the State's economy.  He                                                                         
advised that it is difficult to hire from within the State                                                                      
when all the children of the State move out of state for                                                                        
training.  Ultimately, they end up living where they                                                                            
graduate from college.                                                                                                          
                                                                                                                                
BOB CONDON, PRESIDENT, ALASKA FEDERATION OF TEACHERS FOR                                                                        
COMMUNITY COLLEGES, testified in support of HB 441.  He                                                                         
noted that their union was not included on the list proposed                                                                    
by the University. He emphasized that the amount of money                                                                       
needed would not change regardless of whether they were on                                                                      
the list or not. Mr. Condon provided a history of their                                                                         
contract.  He urged that they be placed on the list.                                                                            
                                                                                                                                
Vice Chair Bunde questioned how many people were in that                                                                        
union. Mr. Condon replied that he represented about 260                                                                         
employees.  There are 1,000 or more of non-represented                                                                          
members and 1,000 with the United Academics.                                                                                    
                                                                                                                                
In response to a question by Vice Chair Bunde, Mr. Condon                                                                       
pointed out that their union has historically led the fight                                                                     
for better working conditions and salaries.                                                                                     
                                                                                                                                
Representative Bunde MOVED a conceptual amendment.  Co-Chair                                                                    
Mulder interjected that it was his intention to hold the                                                                        
bill until tomorrow to discuss these issues. Representative                                                                     
Bunde WITHDREW the conceptual amendment.                                                                                        
                                                                                                                                
Co-Chair Mulder commented that it was his intent to treat                                                                       
all new contracts as a "separate package". Mr. Condon                                                                           
recognized that the legislation appears to have a two-year                                                                      
prohibition.                                                                                                                    
                                                                                                                                
HB 441 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  
HOUSE BILL NO. 207                                                                                                              
                                                                                                                                
An Act relating to the registration of persons who                                                                              
perform home inspections; and providing for an                                                                                  
effective date.                                                                                                                 
                                                                                                                                
REPRESENTATIVE NORMAN ROKEBERG stated that HB 207 would                                                                         
protect consumers and the home inspection industry by                                                                           
licensing home inspectors in Alaska.                                                                                            
                                                                                                                                
He noted that consumers deserve assurance that the home                                                                         
inspector that they hire is competent and that they have                                                                        
recourse against inspectors that are not. HB 207 would                                                                          
accomplish that by establishing licensing qualifications                                                                        
such as registration, insurance, and proof of competency via                                                                    
a written and practical examination. Home inspectors will                                                                       
also be required to provide consumers with an inspection                                                                        
report, using a standardized checklist comprised of elements                                                                    
deemed necessary by the industry for a thorough home                                                                            
inspection.                                                                                                                     
                                                                                                                                
Representative Rokeberg commented that a faulty inspection                                                                      
could have serious consequences for consumers, particularly                                                                     
when they are buying or selling a home. Common sense                                                                            
dictates that home inspectors must be held accountable for                                                                      
their work. The legislation would limit legal actions                                                                           
against a licensed and registered home inspector to a                                                                           
written home inspection report not more than one year old                                                                       
and/or lawfully disclosed. Also, the penalty the court may                                                                      
impose is not more than $500 for each violation.                                                                                
                                                                                                                                
Co-Chair Mulder noted the language shifts between the                                                                           
various committee substitutes.  He questioned why the State                                                                     
should create another board.  Representative Rokeberg                                                                           
responded that there would be more enforcement while                                                                            
protecting the consumer.  Additionally, it was not the                                                                          
intent, to write the regulations into the statute.  He                                                                          
believed that to draft the regulations is warranted, as it                                                                      
would specify an examination.  He stated that they would                                                                        
have failed in the effort to provide the sounding board                                                                         
without a board.                                                                                                                
                                                                                                                                
Representative Austerman voiced concern with the                                                                                
qualifications outlined for the inspectors.  Representative                                                                     
Rokeberg replied that the home inspectors would not be                                                                          
inspecting the new homes.  Additionally, those home                                                                             
inspectors should be providing nothing more than a "visual                                                                      
inspection" of the home.  He noted that there would be a                                                                        
liability associated with the inspection.                                                                                       
                                                                                                                                
Representative Austerman asked if the liability would be                                                                        
terminated after a one-year inspection.  Representative                                                                         
Austerman disagreed with that concept.  Representative                                                                          
Rokeberg replied that it would not be shifted.                                                                                  
                                                                                                                                
Representative Austerman questioned how much liability would                                                                    
need to be purchased.  Representative Rokeberg replied.                                                                         
(Testimony inaudible).                                                                                                          
                                                                                                                                
Representative G. Davis questioned the reason for the                                                                           
legislation.  Representative Rokeberg spoke about the                                                                           
reporting fee.  (Testimony inaudible).  He noted that there                                                                     
could be a limitation to that damage.  He added that people                                                                     
are reluctant to break their word by signing an agreement.                                                                      
                                                                                                                                
Representative Rokeberg commented on the typical routine of                                                                     
an inspection.  The State disclosure law "kicks" in and then                                                                    
it is bargained; however, he acknowledged that there are                                                                        
instances, when there are errors made in the report.  He                                                                        
expounded that the idea of the bill was to relieve the                                                                          
liability of the real estate inspector.  (Testimony                                                                             
inaudible).                                                                                                                     
                                                                                                                                
Co-Chair Mulder voiced concern when determining the home                                                                        
inspection business.  Representative Rokeberg stated that in                                                                    
the statute, there are requirements for the examination.  He                                                                    
stated that there would be a "flushing out".   Co-Chair                                                                         
Mulder asked the amount of experience required.                                                                                 
Representative Rokeberg responded that list was included in                                                                     
the legislation on Page 3, Line 11.                                                                                             
                                                                                                                                
Co-Chair Mulder voiced concern that this would create a                                                                         
"good old boy club" and would be very difficult for a new                                                                       
person to break into.  He advised that he was reluctant to                                                                      
make rules that contain admission and exclusion. Home                                                                           
inspection is a very important function and qualified home                                                                      
inspectors are necessary.  Representative Rokeberg replied                                                                      
that there are specific provisions listed on Page 2.  Co-                                                                       
Chair Mulder argued that those provisions specify what is                                                                       
needed to become an associate inspector is that the person                                                                      
must work under an existing inspector.  He reiterated that                                                                      
it would be difficult for a new person to get in.  He                                                                           
emphasized that there would have to be an existing entity                                                                       
who would be willing to take you on.                                                                                            
                                                                                                                                
Co-Chair Mulder agreed that there would be too much power in                                                                    
the hands of the board.  Representative G. Davis pointed out                                                                    
that engineers are also home inspectors.  Those people could                                                                    
get out from under the "thumb" of the proposed board.                                                                           
Representative Rokeberg interjected that State law currently                                                                    
indicates that a person has to work two years as an                                                                             
engineer's assistant before they can take the examination.                                                                      
He suggested that any kind of professional license could be                                                                     
classified as a professional "guild".                                                                                           
                                                                                                                                
Co-Chair Mulder acknowledged that home inspection is not                                                                        
"rocket science".  He noted that he would create a Letter of                                                                    
Intent to accompany the bill, to clarify that this should                                                                       
remain an open profession.                                                                                                      
                                                                                                                                
Representative J. Davies asked if there was a sunset clause.                                                                    
Representative Austerman voiced his support of a sunset                                                                         
clause.                                                                                                                         
                                                                                                                                
(TAPE CHANGE, HFC 00 - 107, Side 2).                                                                                            
                                                                                                                                
Representative Austerman inquired the types of liability a                                                                      
realtor had which would be given up to the inspector.                                                                           
Representative Rokeberg spoke to the shifting around of the                                                                     
responsibility and the liability for a realtor.  He noted                                                                       
that the standards are based on what you "should have known"                                                                    
given a reasonable basis.  He added that most real estate                                                                       
brokers are not trained in inspecting.                                                                                          
                                                                                                                                
Co-Chair Therriault questioned language on Page 6, Line 5,                                                                      
"alleging & proving".                                                                                                           
                                                                                                                                
CATHERINE REARDON, DIRECTOR, DIVISION OF LISCENSING,                                                                            
DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT, explained                                                                       
that language was a quote from the contractor's statute.                                                                        
                                                                                                                                
Co-Chair Therriault questioned the exemptions listed on Page                                                                    
7.  He asked if all those persons would be excluded.                                                                            
Representative Rokeberg explained that was correct.                                                                             
                                                                                                                                
Co-Chair Therriault pointed out the amendment proposed by                                                                       
Representative Rokeberg.  [Copy on File].  Representative J.                                                                    
Davies commented that it "did not make sense" the way it was                                                                    
drafted.                                                                                                                        
                                                                                                                                
RON JOHNSON, (TESTIFIED VIA TELECONFERENCE), REAL ESTATE                                                                        
COMMISSION, KENAI, addressed a concern on Page 4, the                                                                           
identification requirements.  He asked the reason for using                                                                     
the license number.  He stated that appraisers are not now                                                                      
required to use their license numbers for advertising.                                                                          
                                                                                                                                
He asked about using the title "license home inspector" even                                                                    
if the person was an engineer.  Mr. Johnson noted that the                                                                      
major concern rests on Page 5, listing the types of                                                                             
insurance.  He pointed out that there is no consumer                                                                            
protection in that language and he urged that section be                                                                        
removed from the bill.  Mr. Johnson listed additional                                                                           
concerns with the proposed legislation.                                                                                         
                                                                                                                                
Mr. Johnson concluded, stating that in the fiscal note, most                                                                    
of money would be used for developing education material.                                                                       
He pointed out that there already exists a "wealth" of                                                                          
education material available on line.  He recommended that                                                                      
inclusion should be reconsidered.                                                                                               
                                                                                                                                
In response to Mr. Johnson, Representative Rokeberg stated                                                                      
that the bill would not address his liability, but rather                                                                       
the one-year life of the report.                                                                                                
                                                                                                                                
DEAVE FEEKEN, (TESTIFIED VIA TELECONFERENCE), ALASKAN                                                                           
ASSOCIATION OF REALATORS, KENAI, observed that the concept                                                                      
for this legislation originated from complaints of buyers                                                                       
and sellers in the real estate industry from the home                                                                           
inspectors being used.  He echoed concerns voiced by Mr.                                                                        
Johnson.                                                                                                                        
                                                                                                                                
BRUNO REHBEIN, (TESTIFIED VIA TELECONFERENCE), MAT-SU,                                                                          
stated that most of his concerns had been previously                                                                            
addressed. He observed that the legislation is going to                                                                         
cover new and pre-existing homes and that the costs would go                                                                    
up.  He asked why the homebuilder was not being represented                                                                     
on the board.  Mr. Rehbein inquired who was being protected                                                                     
through the legislation.                                                                                                        
                                                                                                                                
BILL BRUU, (TESTIFIED VIA TELECONFERENCE), MAT-SU, commented                                                                    
that the purpose of the amendment is to assure that the home                                                                    
inspector's liability would not go on forever.                                                                                  
                                                                                                                                
Representative J. Davies questioned why the home inspector                                                                      
would have to give himself permission to do the repairs.                                                                        
Mr. Bruu responded that there is no other place in statute                                                                      
that addressees that concern.  The home inspector needs to                                                                      
have control over the report and to be covered for long term                                                                    
liability.                                                                                                                      
                                                                                                                                
Representative J. Davies asked if it was the intent that the                                                                    
information received from the inspection be used without the                                                                    
written consent from the person who ordered it.  Mr. Bruu                                                                       
explained that the intent was not to release it to anyone,                                                                      
subsequent other than those listed in Sections (A) & (B).                                                                       
The problem which has arisen, is that once the report is                                                                        
released by the home inspector to the buyer, a number of                                                                        
party's call for an interpretation of that document.     He                                                                     
observed that they could receive as many as 6 to 8 calls                                                                        
with requests for information.   He stressed the liability                                                                      
attached to the reports.                                                                                                        
                                                                                                                                
DAVID OWENS, (TESTIFIED VIA TELECONFERENCE), OWENS                                                                              
INSPECTION SERVICES, PALMER, testified in opposition to the                                                                     
legislation. He added that the Mat-Su Homebuilders                                                                              
Association also opposes the legislation and that they would                                                                    
forward a letter stating their views on the concern.                                                                            
                                                                                                                                
Ms. Reardon stated that the original version was modeled                                                                        
after the Construction Contractor statute, AS 08.18.151.                                                                        
She added that public liability insurance could have come                                                                       
from the Construction Contractor statute.                                                                                       
                                                                                                                                
Ms. Reardon referred to the fiscal note. She observed that                                                                      
the original note has $25 thousand dollars included for an                                                                      
examination.  The current note removes the exam money.                                                                          
There continues to be a fiscal note that estimates an $800                                                                      
dollar fee if there are 100 inspectors.  She observed that                                                                      
it would be less if there were more inspectors.  Ms. Reardon                                                                    
noted that there is a sunset date of 2004, established in                                                                       
Section #3, Page 9.                                                                                                             
                                                                                                                                
JOHN BITNEY, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE                                                                        
CORPORATION (AHFC), ANCHORAGE, testified in support of the                                                                      
legislation. The current practice for AHFC would be changed                                                                     
under Sections 4 and 5.  Currently, in all new construction,                                                                    
there is a standard for qualification of purchase with a                                                                        
home mortgage with AHFC.  He pointed out that there is a                                                                        
five-step process that has to be signed off on.  The bill                                                                       
would guarantee that these people are able to certify homes                                                                     
to qualify for purchase by AHFC.  During the transition                                                                         
period, International Conference of Building Officials                                                                          
(ICBO) would be eliminated and only state home inspectors,                                                                      
on behalf of AHFC, would be recognized.                                                                                         
                                                                                                                                
Mr. Bitney continued that there are a number of                                                                                 
circumstances where people have purchased homes.  They have                                                                     
been told that the home had been inspected.  In Alaska, that                                                                    
can mean different things depending on the individual sale.                                                                     
When something goes wrong with the home, the case is that                                                                       
the homebuyer is out a substantial investment and they want                                                                     
to sue everyone.  He observed that AHFC has been called on                                                                      
for assistance and is concerned over the liability                                                                              
associated with that. The legislation would create a "level                                                                     
playing field" and would establish a more identifiable State                                                                    
standard.                                                                                                                       
                                                                                                                                
Representative J. Davies asked if the legislation would                                                                         
apply to energy raters. Mr. Bitney responded that it would                                                                      
not apply to energy raters.  He noted that further on in the                                                                    
AHFC statutes, the energy efficiency standards are                                                                              
established.  The bill does not address that statute.                                                                           
                                                                                                                                
Co-Chair Therriault stated that HB 207 would be HELD in                                                                         
Committee for further consideration.                                                                                            
HOUSE BILL NO. 317                                                                                                              
                                                                                                                                
An Act relating to recruitment, selection, appointment,                                                                         
and promotion of state employees and the duties of the                                                                          
Department of Administration concerning those and other                                                                         
related functions; and providing for an effective date.                                                                         
                                                                                                                                
DAVE STEWART, PERSONNEL MANAGER, DEPARTMENT OF                                                                                  
ADMINISTRATION, stated that HB 317 would refresh Title 39                                                                       
with respect to improvement and hiring State employees in                                                                       
order to make the process more streamline.                                                                                      
                                                                                                                                
Representative J. Davies asked if the legislation would get                                                                     
rid of the register system.  Mr. Stewart replied that it                                                                        
would.  Representative J. Davies believed that would be                                                                         
good.                                                                                                                           
                                                                                                                                
Representative Phillips asked if people would still have the                                                                    
ability to go to the local job centers to obtain the                                                                            
information if they do not have home computers.  Mr. Stewart                                                                    
replied that they would.  Representative J. Davies pointed                                                                      
out that computers are also available at all the job                                                                            
centers.                                                                                                                        
                                                                                                                                
Representative Foster MOVED to report CS HB 317 (STA) out of                                                                    
Committee with individual recommendations and with the                                                                          
accompanying fiscal note.                                                                                                       
                                                                                                                                
(TAPE CHANGE, HFC 00 - 108, Side 1)                                                                                             
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CS HB 317 (STA) was reported out of Committee with a "no                                                                        
recommendation" and with a zero fiscal note by the                                                                              
Department of Administration.                                                                                                   
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 5:05 P.M.                                                                                              
H.F.C. 23 4/06/00                                                                                                               

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